Real Estate and Home Mortgages - Making extra mortgage payments with rewards card

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sweetboy
05-16-08, 03:47 PM
Hi,

I see advertisements that offer rewards when you use a rewards credit card to pay your mortgage. Is this a good idea?? Does anyone out there currently do this? The card that I am looking at offers a 0% APR for the 1st 12 months on balance transfers (w/ a 3% balance transfer fee) and 9.99% APR on purchases.

sweetboy

joed
05-16-08, 07:59 PM
They are trying to get your money and hoping you won't pay it off right away. That way they can charge you interest. You would need to do some calculation including that 3% charge to se if and how much money you would save.
Pendragon
05-16-08, 08:38 PM
You might want to check with your mortgage company, many charge a service fee to accept the payment for you (rather than you sending it to them). Mine charges something around $15 to make a payment online through their website. No other creditor I know of charges it's customers to make a payment...

mitch17
05-17-08, 10:48 AM
Pay your mortgage with a credit card? Seriously?
Gunguy45
05-17-08, 08:14 PM
Well, it makes lots of sense, if you pay the balance at the end of the month with no interest, and there are no charges involved. Don't miss even one tho or the advantage is right out the window.

Take the reward points and take a vacation.